In The Bike Company, in the next step you need to confirm production activities in the Confirm Production Operation app. This is the seventh step in the overall MTO process.
Confirming production operations captures produced quantities in operations, along with corresponding production times (such as machine hours, labor hours, and setup time). The resulting direct production costs are posted to the production order through direct activity allocation, debiting the order and crediting the cost center that the work centers are assigned to.
Again, in the event-based approach, this usually goes along with an overhead cost posting based on the direct production costs. Additionally, WIP for the additional costs posted to the production order is calculated and posted as well.
Note
For detailed information on event-based production costs, see the learning journey: Evaluating Production Accounting in Make-to-Stock Scenarios in SAP S/4HANA.
In this course, we focus on the delta between the MTS and MTO production scenarios. We do not explain event-based production costs postings in detail.
As discussed previously, actual costs posted to the production order can be analyzed using different reporting apps, such as the Analyze Production Costs – Event-Based app or the Order Cost Details – Event-Based app. In these reporting apps, the costs posted to the production order can also be analyzed on the sales document level due to its attribution.
